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iogann1982 [59]
3 years ago
13

Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $77,000

, or a deferred bonus of $98,000 payable in 10 years.
Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
Business
2 answers:
In-s [12.5K]3 years ago
8 0

Answer:

Immediate bonus of $77,000

Explanation:

Given the following

Immediate bonus = $77,000

Differed bonus = $98,000

Rate = 4%

Duration = 10

$66,205 deferred bonus

$77,000 immediate bonus

Calculating the differed bonus

We have

=$98,000 x 0.67556= $66,205

Present value of deferred bonus

= $66,205

He has a choice of collecting either an immediate bonus of $77,000, or collect a deferred bonus of $66,205 payable in 10 years

The best option for Walters is to collect an immediate bonus now

gulaghasi [49]3 years ago
5 0

Answer:

$66,205 deferred bonus

$77,000 immediate bonus

Explanation:

$98,000 discounted at 4% for 10 years

=$98,000 x 0.67556= $66,205

Present value of deferred bonus $66,205

Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $66,205 payable in 10 years

Therefore Walter should accept the bonus of $77,000 now.

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Kaylis [27]

Identify.

In the identify stage, you will determine if the opportunity fits your skills, interests, and goals.

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3 years ago
During 2017, Ziplock Manufacturing expected Job No. 89 to cost $700,000 in overhead, $1,000,000 in direct materials, and $500,00
irga5000 [103]

Answer:

a. not able to be determined from the provided information.

Explanation:

For determining the over applied or under applied, first, we have to compute the predetermined rate based on the direct material cost which is  

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= $0.70

Now the applied overhead is  

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And, the actual overhead amount is not given by which we can find out the underapplied or overapplied overhead amount

So, in this case, the correct option is a.

7 0
4 years ago
Automatic stabilizers refer to:
Aliun [14]

Answer:

B) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

The two most common automatic stabilizers are: income taxes and unemployment benefits.

When the economy is strong, people make more money, and income tax revenue automatically increases.

On the contrary, when the economy is weak, or in recession, people earn less, and more of them are unemployed. Unemployment benefits therefore increase accordingly.

4 0
3 years ago
Which magazine published the article "The Rise of Crowdsourcing" in 2006?
tensa zangetsu [6.8K]

why would you post on brainly, only to give the answer?

but your right, its b. wired

3 0
4 years ago
Read 2 more answers
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BigorU [14]

Answer:

The correct answer is A and C as both are true statement.

Explanation:

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